The Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020

• Citation: S.I. 2020/1499
• Sections: 7

Section 1 Citation and commencement

These Regulations may be cited as the Taxes (State Aid) (Amendments) (EU Exit) Regulations 2020 and come into force on IP completion day.

Section 2 Finance Act 2000

(1) Paragraph 44 of Schedule 6 to the Finance Act 2000 is amended as follows.

(2) In sub-paragraph (2C) at the beginning of sub-paragraph (b) insert “in a case described in sub-paragraph (2CA),”.

(3) After that sub-paragraph insert—

(2CA) That case is where the result is required to be compatible with the common market by virtue of relevant separation agreement law (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).

Section 3 Capital Allowances Act 2001

(1) The Capital Allowances Act 2001 is amended as follows.

(2) In section 45DB(11) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.

(3) In section 45M(12) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.

(4) In section 212T(6) after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.

(5) In section 212U(5) in the definition of “single investment project”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.

(6) In section 360L(6) in the definition of “General Block Exemption Regulation”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”.

Section 4 Income Tax Act 2007

(1) The Income Tax Act 2007 is amended as follows.

(2) In section 173A(3)(c) —

(a) after “approved by the European Commission” insert “before IP completion day”;

(b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.

(3) In section 175A(8) —

(a) in the definition of “entering a new product or geographical market” after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;

(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.

(4) In section 180B(3) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.

(5) In section 196A after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”.

(6) In section 257DE(3) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.

(7) In section 257MNC —

(a) in subsection (5)—

(i) in the opening words, after “laid down” insert “in Commission Regulation (EU) No 1407/2013 (de minimis aid) as it had effect in the United Kingdom immediately before IP completion day”;

(ii) omit paragraphs (a) and (b);

(b) in subsection (6) for “as amended from time to time” substitute “as it had effect in the United Kingdom immediately before IP completion day”.

(8) In section 280B(4)(c) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.

(9) In section 280C(9) —

(a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;

(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.

(10) In section 286B(2) after “Community Guidelines on State Aid for Rescuing and Restructuring Firms in Difficulty (2004/C244/02)” insert “as those guidelines had effect in the United Kingdom immediately before IP completion day”.

(11) In section 292A(3)(c) —

(a) after “approved by the European Commission” insert “before IP completion day”;

(b) for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect at the time of the approval)”.

(12) In section 294A(8) —

(a) in the definition of “entering a new product or geographical market”, after “(General block exemption Regulation)” insert “as it had effect in the United Kingdom immediately before IP completion day”;

(b) in the definition of “first commercial sale” for “(as those guidelines may be amended or replaced from time to time)” substitute “(as those guidelines had effect in the United Kingdom immediately before IP completion day)”.

(13) In section 307A after “30 December 2003” insert “, except that references in that Framework to building in the Union are to be read as including building in the United Kingdom”.

Section 5 Corporation Tax Act 2009

(1) The Corporation Tax Act 2009 is amended as follows.

(2) In section 1123(6) for “(as amended from time to time)” substitute “as it had effect in the UK immediately before IP completion day”.

(3) In section 1217KC(3) —

(a) for paragraph (a) substitute—

(a) was in force under Article 1 of Council Regulation (EC) No 994/98 immediately before IP completion day, and

(b) in paragraph (b) for “makes” substitute “made”.

(4) In section 1217RJ after “with the internal market” insert “(as that Regulation had effect immediately before IP completion day)”.

Section 6 Finance Act 2016

(1) Section 182 of the Finance Act 2016 is amended as follows.

(2) In subsection (1), in paragraph (b) of the definition of “relevant EU obligations”, for “obligations under EU law” substitute “post-withdrawal obligations”.

(3) In subsection (2), at the end insert “as it has effect by virtue of the Protocol on Ireland/Northern Ireland in the EU withdrawal agreement”.

(4) After subsection (2) insert—

“Post-withdrawal obligations” means obligations that arise or continue by virtue of the EU withdrawal agreement (including the Protocol on Ireland/Northern Ireland)..

Section 7 The Climate Change Levy (General) Regulations 2001

(1) The Climate Change Levy (General) Regulations 2001 are amended as follows.

(2) In regulation 51M—

(a) at the beginning of paragraph (1) insert “In a case described in paragraph (3),” and

(b) after paragraph (2), insert—

(3) For the purposes of paragraph (1), the case is where relevant separation agreement law applies (as defined in section 7C(3) of the European Union (Withdrawal) Act 2018).